BRITAIN'S shale gas revolution is finally set to light up this year, spurred on by Budget proposals to ease tax burdens and train thousands of new workers for the industry.

Engineers at work at Cuadrilla's fracking plant in Preston, Lancashire [GETTY]

Chancellor George Osborne wants to ramp up domestic energy production as part of a plan to defend the nation's energy supplies from global disruptions such as the Ukraine crisis.

He announced changes to onshore allowances that will reduce the tax rate on part of shale gas explorer profits on projects dating from December 5, 2013.

EY energy tax services director Robert Hodges said the changes would help stimulate investment in this "new and nascent industry".

He added: "It will be welcome news for the shale gas industry which needs to commit significant investment to prove commercial reserves in the UK."

The Government also vowed to work with the industry to ensure the UK has the right skills and supply chain in place to benefit from the huge potential of our oil and gas reserves.

According to the Institute of Directors the shale gas industry and resulting supply chain could create 74,000 jobs in the UK.

Ken Cronin, chief executive of the UK Onshore Operators Group, which along with EY will report on skill needs at the end of next month, said: "We know there is a skills gap but we are trying to put some meat on the bone. We will definitely need geologists, land experts and geo-physicists. We will also need apprenticeship schemes and skills academies. The Budget shows the Government's commitment in helping support this training."

According to the British Geological Survey there is 1,300 trillion cubic feet of shale gas in the north of England alone of which 130 trillion is said to be recoverable. To put that in context the UK consumes three trillion cubic feet of gas a year.

It will be welcome news for the shale gas industry which needs to commit significant investment to prove commercial reserves in the UK

EY energy tax services director Robert Hodges

Small explorers such as Cuadrilla Resources, looking for shale in Lancashire and Sussex, and stock market-listed IGas Energy looking in Cheshire and Lancashire have emerged.

Major operators are also keen, including British Gas owner Centrica which has taken a 25 per cent stake in Cuadrilla's shale licence in Bowland, Lancashire, and French giant Total looking for shale in Lincolnshire.

But campaigners concerned about the potential environmental damage from fracking have along with planning concerns stalled development.

Cronin says the Budget will change that with frackers sharpening their drill bits. He said: "This provides a foundation of certainty for investors. Operators will now start to make announcements about where they are going to drill."

UK Onshore Gas, a possible Aim candidate, is poised to start drilling six wells in South Wales which it claims has a potential capacity of well over 50 trillion cubic feet of gas.

Chairman Gerwyn Williams says there will be enough to export. He said: "If it can happen in the US, it can happen here."